Epic Update : RBI policy

The government's action on pending economic reforms and the Reserve Bank of India's policy review next week are likely to dictate the directions for the India markets.
The markets are likely to move in a range ahead of the RBI's rate review on Tuesday. Most analysts expect the central bankBSE 1.07 % to leave interest rates on hold and say that the RBI could instead cut the cash reserve ratio.
An unexpected jump in industrial output and lower-than-expected inflation numbers have reinforced hopes that the RBI could start cutting interest rates in January. Further traction on reforms is also anticipated as the winter session of Parliament is due to end on December 20.
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